The LPO market is emerging as a key player in the outsourcing industry. It is currently established with a valuable customer base supporting its core aspects of operations. However, predictions of the market attaining maturity failed to prove true in 2012. The market growth reached an all-time high of 34% in 2011 but it slumped down to 31% in 2012.
Meanwhile, the market size showed a steady growth from $640 million to $1,120 million over the period 2010-2012.
Emerging trends reveal the necessity of striking innovative deals that will motivate the LPO to register improved market growth. Furthermore, operational benefits will be gained that will deliver the much needed boost to this sector.
Current LPO buyers have to override the potential risks that arise with unexpected failures. Besides, new buyers stand to gain from this uncertainty as they will be able to leverage these shocks and incorporate the requisite protection.
In 2012, the worth of the LPO market was estimated as $2.4 billion on a global scale. LPO market growth is improving owing to the presence of larger forces that drive legal operations to be transformed into efficient and leaner organizations.
In-house counsels and other supporting legal services have not been spared the axe, when it came to streamlining and cost cutting. As a consequence, enterprise legal services are on the lookout for new modes of operation that will lead to a reduction in expenditure.
LPO services gain momentum
The adoption of outsourcing services had received a major boost in 2009 when Rio Tinto, a global mining company, brokered a deal with CPA Global, an Indian LPO provider. This led to an annual saving of $8 million, which totaled one-fifth of the legal costs for Rio Tinto.
Major legal firms are now feeling the heat as they are being pressurized to reduce fees. Efficiency in operations has been encouraged by direct dealing with offshore LPO providers.
The LPO model, to a large extent, is concerned with labor arbitrage. However, new trends have been emerging in this direction. Integration of automation and process re-design has led the way with the focus shifting to collaboration between law firms.
Market growth is expected to show an increase due to the fact that the economy is at a stage of recovery and business operations are considered to be robust in the present scenario.
A trusted provider of legal solutions, Integreon, is on the path to merging onshore, offshore, and delivery of services on location as an integrated offering. The prime focus is on supplying value-added services that would result in going beyond the boundaries of efficiency improvement.
All the current trends point towards a high market growth for the LPO industry. This will inspire the sector to move towards a new domain of expansion and higher levels of development.